IL Auctioneer cheat sheet

The Illinois Auction License Act is codified at 225 ILCS 407; the implementing administrative rules are at 68 Ill. Adm. Code 1450.

IDFPR administers the Act, issues auctioneer and auction firm licenses, investigates complaints, and imposes discipline.

The Act regulates two main license types: individual auctioneer licenses and auction firm licenses for business entities.

An auction firm must designate a licensed auctioneer as its managing auctioneer responsible for compliance.

Auction means a public sale of property through open and competitive bidding.

Conducting an auction for compensation without the required license is unlicensed practice and subject to penalties.

The Department may deny, suspend, revoke, place on probation, or refuse to renew a license for violations of the Act or rules.

The Act lists specific exemptions from licensure, such as certain court-ordered, governmental, or fiduciary sales.

Auctioneer applicants must be at least 18 years old and have a high school diploma or equivalent.

Applicants must complete a Department-approved auctioneer training course before sitting for the licensing exam.

Applicants must pass the Illinois auctioneer licensing examination and pay the required fees.

An auction firm applicant must identify a designated managing auctioneer who holds a valid Illinois auctioneer license.

Licenses are renewed biennially; renewal requires completion of Department-required continuing education, including ethics.

A licensee may not conduct auction activity while a license is expired, suspended, or revoked.

Licensees must notify IDFPR of changes in name, business address, or managing auctioneer as required by rule.

Late renewal after expiration may require reinstatement, additional fees, and proof of continuing education.

Shill bidding, meaning bidding by the auctioneer, seller, or their agent to inflate price without disclosure, is prohibited.

The auctioneer must disclose whether an item is sold with a reserve and must not falsely state that an item will sell without reserve.

A buyer's premium, if charged, must be disclosed before bidding.

The auctioneer may not accept undisclosed compensation from both the buyer and seller in the same transaction.

Auction advertising must not be false, deceptive, or misleading and must identify the licensed firm as required by rule.

The auctioneer must not misrepresent the condition, provenance, or ownership of property.

Material terms, including payment method, buyer's premium, reserve, and removal terms, must be announced or published before bidding.

A licensee must not commingle client funds with personal or business funds.

The auctioneer must conduct the auction lawfully and comply with Department orders and applicable local requirements.

A written contract between the auctioneer or firm and the seller is required before the auction and must state commission, expenses, reserve, and settlement terms.

Funds held for sellers or buyers must be deposited in a separate trust or escrow account.

Trust or escrow funds may not be used for operating expenses or commingled with business or personal funds.

The licensee must provide the seller a settlement statement accounting for sale prices, commissions, expenses, and net proceeds.

Buyer deposits and payments must be held in trust until the transaction closes or is lawfully disbursed.

Auction records, including contracts, settlement statements, bid records, and trust account records, must be retained for at least 5 years.

Records must be made available to IDFPR for inspection upon request.

If ownership of escrow funds is disputed, the licensee must retain the funds in trust until the dispute is resolved or lawful direction is received.